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More on the HSBC (HBC) loan portfolio sale: The package has a book value of $3.4B vs. the sale...

More on the HSBC (HBC) loan portfolio sale: The package has a book value of $3.4B vs. the sale price of $3.2B, so the bank won't book too much of a loss. Newcastle Chairman Wes Edens said just days ago this could be the year when banks really start to unload non-performing loan portfolios, and the buy makes a nice addition ahead of the spinoff the company's residential business.
Comments (1)
  • Zanalyst
    , contributor
    Comments (78) | Send Message
     
    The latest headline should read:

     

    HSBC Loan Portfolio BV Magically Drops 20% In 6 Hours To Avoid “too much of a loss”

     

    • Tuesday, March 5, 9:03 AM ET
    “Newcastle Investment jumps 3.1% after inking a deal to acquire up to 50% of a $4.2B UPB portfolio of consumer loans - home and unsecured personal - from HSBC.”
    • Tuesday, March 5, 3:26 PM ET
    “More on the HSBC loan portfolio sale: The package has a book value of $3.4B vs. the sale price of $3.2B, so the bank won't book too much of a loss.”

     

    Now that’s efficiency – in just over 6 hours HSBC can reduce the BV of its loan portfolio it’s selling by about 20% ($4.2B to $3.4B) “so the bank won't book too much of a loss”.

     

    Cool – just think of the magic they can work when they have a whole quarter to play with the numbers! And it's all legal, too!

     

    Actually, bank regulators love it because not booking actual losses mitigates capital erosion - which is bank management's mandate don't you know.

     

    Once the banking industry learns to manage its regulator, then credit risk management is a snap!

     

    That's why I just l-o-v-e bank stocks!
    5 Mar 2013, 09:36 PM Reply Like
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